Fauji Cement Company Limited (FCCL) delivered its highest-ever annual profit in FY26, with profit after tax rising 21% year over year to Rs. 16.2 billion, according to research reports by Topline Securities and Arif Habib Limited.
Arif Habib Limited noted that the company’s FY26 earnings translated into an approximately 22% compound annual growth rate (CAGR) over the past decade, highlighting sustained growth in profitability.
The company’s board also approved a final cash dividend of Rs. 1.50 per share for the fourth quarter of FY26.
For 4QFY26, Fauji Cement posted a profit of Rs. 5.40 billion, translating into earnings per share (EPS) of Rs. 2.20. Quarterly profit increased 38% year over year and 56% from the previous quarter, beating market expectations.
The stronger-than-expected result was mainly attributed to a lower effective tax rate. The company’s effective tax rate fell to 22.8% in 4QFY26, compared with 42.4% in 3QFY26 and 38.0% in the same quarter last year.
Revenue and Cement Dispatches
Fauji Cement’s net revenue rose 10% year over year and 7% quarter over quarter to Rs. 23.90 billion during 4QFY26.
The increase was primarily supported by stronger domestic cement dispatches, which climbed 15% year over year to 1.35 million tonnes.
For the full fiscal year, sales increased 5% to Rs. 93.69 billion.
The company reported a gross margin of 37.6% in 4QFY26, compared with 35.7% in the preceding quarter and 39.1% in 4QFY25.
Costs and Finance Expenses
Distribution and administrative expenses increased 15% year over year to Rs. 1.29 billion during 4QFY26. On a full-year basis, these expenses rose 11% to Rs. 5.2 billion.
Other income declined 2% year over year to Rs. 492 million in the fourth quarter. However, full-year other income increased substantially by 42% to Rs. 2.5 billion.
Finance costs provided additional support to earnings, falling 18% year over year and 9% quarter over quarter to Rs. 931 million in 4QFY26.
The decline was attributed to lower interest rates and reduced debt levels. For FY26, finance costs fell 28% year over year to Rs. 4.1 billion.
Fauji Cement Eyes Attock Cement Merger
Alongside the financial results, Fauji Cement’s board authorized management to evaluate a potential merger of Attock Cement Pakistan Limited (ACPL) with Fauji Cement.
Management will assess the proposed transaction and submit its recommendations to the board for consideration.
Topline Securities retained its Buy rating on Fauji Cement, noting that the company is currently trading at an estimated FY27 price-to-earnings ratio of 8.2 times.
